A report says Baby boomers love blue chips, while Millennials and Gen Z prefer lithium. Picture Getty
ASX Large Caps: Shares down 1pc, AGL downgrade, and stock preferences between Boomers and GenZ
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- Local shares declined by more than 1pc on Wednesday
- AGL hit by broker downgrade
- Baby boomers love blue chips, while Millennials and Gen Z prefer lithium – report
The ASX 200 index dropped by 1.29% on Wednesday as Real Estate, Utilities, and Financial sectors led the decline.
AGL Energy (ASX:AGL) pulled the Utilities sector lower, down by more than 4% following a downgrade from broker Macquarie to a “neutral rating”.
Investors also sold real estate stocks like Goodman (ASX:GMG) and Charter Hall (ASX:CHC), which were down 2% each.
The Aussie dollar also fell below US66c to trade now at US65.92c following the RBA’s decision yesterday to keep rates steady at 4.1%.
Interest rate differential between Australia and the US is key to the outlook for the AUD, particularly if the Fed Reserve decides to increases rates again and the RBA remains on hold.
Elsewhere, the ABS says new home approvals fell by 7.7% in June from May. At just 175,790 approvals, it’s the lowest level since June 2020.
Boomers love blue chips, Millennials and Gen Z prefer lithium
Meanwhile, a report from Selfwealth says that baby boomers’ love affair with blue chips is on the rise.
According to the report, established investors with million dollar-plus portfolios were very active buyers of prominent ASX stocks leading into the end of last financial year.
“Breaking down our members into generational cohorts, we found that baby boomers with established portfolios favoured sectors like mining, banking, and hybrids, mostly centred on blue-chip stocks,” said Robert Marfell of Selfwealth.
Fortescue Metals (ASX: FMG) was the most bought stock among the Boomers, outranking the next-best placed stock, CSL (ASX: CSL), by a factor of nearly four-to-one.
Millennials and Gen Z, on the other hand, were more interested in companies that will play a major role in renewable energy provision, such as lithium.
Leo Lithium (ASX: LLL) and Lithium Energy (ASX: LEL) were the fourth and eleventh most bought securities by this cohort through June.
BIG CAP WINNERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| RDX | Redox Limited | 2.53 | 4.77 | 1,138,070 | $1,265,446,241 |
| CDA | Codan Limited | 7.79 | 3.66 | 248,764 | $1,360,572,386 |
| PME | Pro Medicus Limited | 71.35 | 3.38 | 159,926 | $7,207,914,102 |
| PSI | Psc Insurance Ltd | 4.90 | 2.08 | 132,194 | $1,707,282,821 |
| STX | Strike Energy Ltd | 0.41 | 1.85 | 7,351,656 | $1,025,278,446 |
| IPL | Incitec Pivot | 3.08 | 1.65 | 7,423,853 | $5,884,941,838 |
| GNE | Genesis Energy Ltd | 2.51 | 1.62 | 26,552 | $2,631,221,749 |
| RWC | Reliance Worldwide | 4.21 | 1.20 | 1,137,635 | $3,286,794,222 |
| RMD | ResMed Inc. | 34.04 | 1.16 | 920,745 | $14,187,812,149 |
| AIZ | Air New Zealand | 0.73 | 1.04 | 931,346 | $2,425,294,307 |
| PDN | Paladin Energy Ltd | 0.78 | 0.97 | 9,926,686 | $2,295,469,289 |
Software company Codan (ASX:CDA) says it has completed the 100% acquisition of Eagle NewCo, a UK command and control solutions business, from NEC Software UK.
Total consideration was approximately $22 million, which was funded by Codan’s existing debt facility.
Codan expects to spend a further ~$3 million in set up and in integration costs over the next 12 months. Eagle meanwhile achieved EBITDA of approximately $3 million in the year ended March.
PSC Insurance (ASX:PSI) expects to deliver underlying EBITDA of approximately $111 million in FY23, subject to audit.
PSC initially set at a guidance range of $101-105m EBITDA in August 2022, and upgraded the full year guidance to $104-108m EBITDA in February this year before today’s forecast.
BIG CAP LOSERS
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| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| NST | Northern Star | 11.32 | -3.17 | 2,062,490 | $13,463,427,522 |
| AGL | AGL Energy Limited. | 11.66 | -5.05 | 3,912,002 | $8,261,336,021 |
| CHC | Charter Hall Group | 10.97 | -3.73 | 1,510,082 | $5,387,438,097 |
| TLX | Telix Pharmaceutical | 10.96 | -4.32 | 643,182 | $3,650,354,669 |
| CIA | Champion Iron Ltd | 5.82 | -4.12 | 1,239,656 | $3,139,362,275 |
| DRR | Deterra | 4.55 | -4.61 | 1,283,581 | $2,521,136,310 |
| SNZ | Summerset Grp Hldgs | 9.59 | -3.62 | 6 | $2,319,956,358 |
| IRE | IRESS Limited | 10.06 | -3.73 | 311,551 | $1,951,950,003 |
| HMC | HMC Capital Limited | 5.03 | -3.08 | 371,360 | $1,804,111,771 |
| ASK | Abacus Storage King | 1.31 | -3.33 | 555,450 | $1,774,038,999 |
| CMM | Capricorn Metals | 4.24 | -4.50 | 638,180 | $1,669,254,297 |
| NEU | Neuren Pharmaceut. | 12.67 | -3.28 | 218,154 | $1,658,010,356 |
| JDO | Judo Cap Holdings | 1.30 | -4.78 | 745,040 | $1,503,507,026 |
| CNI | Centuria Capital | 1.60 | -5.04 | 793,484 | $1,347,657,598 |
| RMS | Ramelius Resources | 1.26 | -3.08 | 1,619,317 | $1,288,687,631 |
| RRL | Regis Resources | 1.62 | -5.00 | 6,712,155 | $1,283,642,562 |
| CQE | Charter Hall Soc In | 2.90 | -4.14 | 838,592 | $1,115,950,817 |
| WBT | Weebit Nano Ltd | 5.31 | -5.35 | 1,193,605 | $1,051,653,063 |
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